If you use your personal car for business or have a vehicle registered through your company, you want to ensure you keep a proper logbook. This is a record of the mileage it's driven as well as other details that may be requested by the tax office. The logbook should be considered as important as all other tax paperwork you keep for your business. Note a few reminders for accurate recordkeeping in your car's logbook.
1. When it begins
There is actually no date when you need to begin a new logbook; you're not required to start a new one on January 1 or the first day of your company's fiscal year, for example. If you do fill up your logbook in the middle of the year, don't hesitate to start a new one as needed.
However, while you can start a book at anytime, you do need to make a note of the start date for the new book and the end date in the old book. Also, each logbook is valid for five years, so be sure you keep yours on hand for that time no matter when they stop and start.
2. Recording mileage
You must record the starting odometer reading and ending odometer reading, total kilometres driven for business purposes, and also the purpose of each journey. For example, note if you're making sales calls, are picking up supplies and materials, are using the vehicle for deliveries, and the like. You don't need to be detailed by writing out all the delivery addresses or names of the customers you're visiting during the journey, but simply the purpose itself.
3. Two vehicles
If you have two or more vehicles for your business, you should keep separate logbooks for them but they must start and stop at the same time period, even if you use one vehicle more than another.
4. Getting logbooks
You can use a logbook you purchase from an office supply or auto supply store, but you can also simply make up your own, as long as it contains all the information required by the tax office. Note, too, that you should consult with an accountant regarding how much of your vehicle's use or expenses you can claim as a deduction on your taxes, rather than relying on information in a pre-printed logbook, to ensure you don't miss any deductions or claim too much of a deduction at tax time.
Share22 November 2016
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